HomeMy WebLinkAboutCOM 0927.001 1996-1998
Effective: December 31, 19%
HAWAII ENTERPRISE ZONES:
INFORMATION FOR BIG ISLAND BUSINESSES
INTRODUCTION
The Enterprise Zones (EZ) program is a joint state-county effort intended to stimulate--via tax
and other incentives--certain types of business activity, job preservation, and job creation in areas
where they are most appropriate or most needed.
If your business (or a branch of your business) is eligible and is located in an Enterprise Zone
(EZ), you can reduce your state taxes and receive other benefits from Hawaii County for up to seven
years by satisfying the EZ hiring and gross receipts requirements. Portions of the following districts
have been designated as Enterprise Zones:
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? North and South Kona County Cour401P-H5.FDG
ELIGIBLE BUSINESSES
To be eligible for Enterprise Zone benefits, at least halt' of your firm's annual gross income
in a Z must be from one or more of the following activities:
? Agricultural production or processing;
? Manufacturing;
? Wholesaling/Distribution;
? Aviation or maritime repair or maintenance;
? Telecommunications switching and delivery systems;
? Information technology design and production;
? Medical research, clinical trials, and telemedicine; and/or
? For-profit training programs in international business management or environmental
remediation.
Almost all other businesses are not eligible, including retailers, professional services, and firms
which build, maintain, or repair real estate, such as custodial, construction, painting, landscaping,
electrical, and plumbing firms.
HIRING REQUIREMENTS
All eligible businesses must also increase their average annual number of full-time employees.
All businesses must already employ at least one full-time worker at their EZ establishment before
beginning participation. (Full-time = 20 or more hours per week.) The specific requirements that
must be satisfied are described on back.
C-92-7.oI
"Existing" businesses : Businesses already in an EZ must increase their average annual number of
full-time employees by at least 10% by the end of the first year. The average annual number of full-
time employees must also increase by at least 10% annually in years 2 to 7.
"New" businesses: Businesses that start up in or move to an EZ must increase their average annual
number of full-time employees by at least 10% by the end of the first year. The average annual
number of full-time employees at the end of years 2 to 7 can fluctuate, but cannot be less than the
number of employees required at the end of the first year. (Note: New businesses will be considered
"new" throughout their seven years of eligibility.)
INCENTIVES
State:
Businesses which satisfy all requirements will qualify for the following state tax benefits for up to
seven consecutive years:
100% exemption from the General Excise Tax (GET) and Use Tax every year. (The
GET exemtion applies only to gross revenues from EZ-eligible business categories within
an EZ.) Contractors are also exempt from GET on construction done within an EZ for an
EZ-qualified business.
An 80% reduction of state income tax the first year. (This reduction goes down 10%
each year for 6 more years.)
An additional income tax reduction equal to 80% of annual Unemployment Insurance
premiums the first year. ('T'his reduction goes down 10% each year for 6 more years.)
NOTE: The two income tax reductions combined cannot exceed 100% of income tax due.
County:
Hawaii County will offer eligible businesses a three-year exemption from any increase in property
taxes resulting from new construction in enterprise zones.
HOW TO PARTICIPATE
If you think your business may be eligible, call the Hawaii County Department of Research and
Development at 961-8366 or the State of Hawaii's Department of Business, Economic Development,
and Tourism (DBEDT) at 974-4000 extension (62593) for more information about enterprise zones.
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Hawaii Enterprise Zones
Enterprise Zone
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This map was produced by the Office of Phmaing (Op) for planning purposes. c o a
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out be used for boundary ioterprwwras or other apetial ana ysis
- „ _ beyond the limitations of the daft. Information regarding compilation dues
Ba.au j and accuracy of the data presented can be obtained from OP.
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Sources: st
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Coastline and Major Roads - USGS DLG files, 1:24,000. 1963. +a..
Hawaiian lalands Enterprise Zones - Department of Business and Economic Development and Tourism. °M9"'"